Illegal Online Gambling Persists in India Despite Ban

India is facing ongoing challenges from an illicit online gambling market that continues to draw users into debt, despite legislative efforts to ban money-based digital gaming. The proliferation of betting applications on smartphones has allowed offshore and unauthorised operators to bypass national restrictions, placing severe financial pressure on households.

India’s Parliament passed legislation in 2025 banning all online games that involve real money. The law was intended to close regulatory gaps exploited by digital betting platforms. However, black-market operators have maintained access through mobile applications, phone banking systems, and illicit bank accounts.

Rapid Growth of the Digital Betting Sector

Before the 2025 prohibition, India’s broader gaming sector expanded rapidly. An industry report indicated that the country had approximately 591 million gamers in 2024, generating $3.7 billion in revenue that year. Money-based gaming comprised roughly 86 percent of that revenue, with industry projections at the time estimating overall sector revenue could reach $9.1 billion by 2029.

Alongside legitimate gaming, illegal betting networks operated at a vast scale. A 2025 report by public-policy organisation CUTS International estimated that the 15 largest unauthorised gambling platforms received more than 5.4 billion visits from Indian users during the 2024-2025 financial year. The organisation estimated annual deposits on unauthorised platforms at roughly $100 billion, though it noted the figure was an estimate rather than an official measurement.

Large-scale operations have also drawn scrutiny from law enforcement. Financial crimes agency the Enforcement Directorate stated in prosecution filings that a single gambling application, Mahadev Online, generated approximately 430 billion rupees (about $5 billion) over seven years.

Impact on Individuals and Families

The accumulation of gambling debts has led to severe consequences for families across the country. In Yedapally village in Telangana state, police reported that 22-year-old Harish spent about 1.8 million rupees (over $21,000) on online betting after starting during the COVID-19 pandemic. Harish borrowed money from at least 12 fellow villagers. Despite selling land and taking additional work to clear debts, Harish and his parents, Ranganaveni Suresh, 53, and Hemalatha, 45, died by suicide on October 3, 2024. Mukesh Kumar, a cousin, stated that “the situation was already out of control” by the time creditors arrived.

Other cases reported by police in Telangana involve similar debt patterns. In February 2024, Selam Manoj, a 20-year-old aeronautical engineering student in Hyderabad, died by suicide after accumulating 300,000 rupees (about $3,600) in debts from friends, which his family had cleared. In another incident, 27-year-old cattle-feed trader Balagoni Pavan Kumar died by suicide following repeated betting losses, despite earlier debt settlements by his father. His sister, Kalpana, remarked that “the whole family paid the price” due to the financial losses.

Complex Factors and Scientific Findings

Police and mental health experts emphasise that suicide is complex and cannot be attributed to a single cause such as gambling alone. However, academic research has documented links between gambling disorder and psychological distress. A 2026 meta-analysis evaluating 14 observational studies found significant associations between gambling disorder and suicidal ideation, suicide attempts, and suicide mortality, though the strength of these links varied by region and study design.

Background

India’s digital economy has expanded rapidly in recent years, driven by widespread smartphone adoption and affordable mobile data. While digital banking and financial applications have widened access to legal financial services, they have also enabled illicit offshore betting platforms to process transactions outside direct regulatory oversight.